How tax is worked out in each country

Your shop works out tax for you at checkout: GST in India, sales tax in the United States and VAT elsewhere. You choose whether your prices include tax, set your rates, and choose what invoices show.

Where to find it

Go to Settings and press the Tax setup tab. Only the store owner can change tax. The tax is named for your store’s country: GST in India, sales tax in the US and Canada, VAT elsewhere, including the UAE.

1. Do your prices include tax?

This decides what the number in every product’s price box means.

• Prices include …: the price you type is what the shopper pays; the tax is part of it. Usual in India, the EU, the UK and Australia.
• Prices don’t include …: tax is added on top at checkout. Usual in the US and Canada.

Choose one and press Save. You’re asked to confirm, because the numbers on your products stay as they are: what shoppers pay changes by the tax. Change any price you want to keep the same for shoppers.

Example: you type ₹1,000 and GST is 12%. With Prices include GST, the shopper pays ₹1,000. With Prices don’t include GST, the shopper pays ₹1,120.

2. Your tax rates (India, UAE and elsewhere)

A tax rate is a named category with a percentage, like “Clothing 12%”. Every product version uses one. Each row shows how many product versions use it.

• Add a rate: type a name and percentage, like “Books 7”, and press Add.
• Manage › Make default for new products: new products start with this rate. Products you already priced keep theirs.
• Manage › Change its rate: type the new percentage (0 to 100). Every product in this category charges the new rate from now on.
• Manage › Delete: only for a rate no product uses and that isn’t the default.

To give a product a different rate, open it and use its Tax category section. To change many at once, select them in Products and press Change tax category. See Find, filter and change products in bulk.

India: CGST, SGST and IGST

Add your GSTIN in Settings › Store info. Your state decides whether an order is charged CGST and SGST (same state) or IGST (another state). The Reports tax card is titled GST you owe.

2. Your tax categories (United States)

In the US, sales tax depends on the shopper’s state, so you don’t type rates. You choose a tax category for each product, and the rate is worked out at checkout from the shopper’s state. Rows say Rate depends on the shopper’s state. Reports show Sales tax collected by state.

Rates in other places

If you sell in other countries through markets, their rates are listed under Rates in other places. You can see them but not change them here.

3. What invoices show

• Your tax number, from Settings › Store info (GSTIN, EIN or sales tax permit, or VAT number).
• Show … on each line, not just the total.
• Email the invoice with the dispatch note.

Press Save invoice settings. New invoices follow the new settings; ones already issued are never changed. Printing and sending invoices to shoppers isn’t available yet.

Filing your tax

DripFunnel works out the tax on each order and adds it up in Reports. It doesn’t file tax returns for you; give the report export to your accountant.

If something goes wrong

Questions